Series 63 practice questionmediumExempt Securities — Government/Municipal Securities
Securities issued, insured, or guaranteed by which of the following entities are exempt from state registration under the USA?
- AA private mortgage company
- BThe government of Canada✓ Correct answer
- CA real estate investment trust (REIT)
- DA publicly traded corporation
Explanation
Why B — The government of Canada
Under USA Section 401, securities issued, insured, or guaranteed by the government of Canada or any Canadian province are exempt from state registration. This Canadian government securities exemption is a distinctive feature of the Uniform Securities Act and reflects close economic ties between the U.S. and Canada.
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